Subchapter X. STANDBY ALLOCATIONS

§ 7.321. Standby allocations.

 The State ceiling for the issuance of nonessential function bonds provided by section 146(d) of the Internal Revenue Code (26 U.S.C.A. §  146(d)) to be amended by the Tax Reform Act of 1986 shall be allocated utilizing the authority provided by section 146(e) of the Internal Revenue Code to be amended by the Tax Reform Act of 1986 and section 6(b) of the Tax-Exempt Bond Allocation Act (73 P. S. § §  397.1—397.8) in the manner provided by this order. Upon the enactment of the Tax Reform Act of 1986 or similar Federal legislation providing a volume cap, the standby allocations provided by this order shall be deemed allocations issued under section 146(e) of the Internal Revenue Code to be amended by the Tax Reform Act of 1986 to the fullest extent permitted by State and Federal statute. Standby allocations provided by this order will be in addition to and separate and distinct from allocations provided under the Tax-Exempt Bond Allocation Act other than section 6(b) (relating to standby allocations) or Article IV-B of the Housing Finance Agency Law (35 P. S. § §  1680.401(b) and 1680.402(b)).

 An amount equal to $150 million shall be allocated for housing related bonds; including qualified residential rental projects and qualified mortgage bonds as defined by sections 142(d) and 143(a) of the Internal Revenue Code (26 U.S.C.A. § §  142(d) and 143(a)) to be amended by the Tax Reform Act of 1986. Requests to apply the housing related bond allocation to specific projects or uses, including mortgage credit certificate programs, will be reviewed and may be approved or disapproved by the Board of the Pennsylvania Housing Finance Agency. Applications for housing related bond allocations shall be made to the Acting Executive Director of the Housing Finance Agency. A specific project or use granted a standby allocation for housing related bonds under section 3 of Executive Order 1986-3 (16 Pa.B. 2277) (June 28, 1986) and for which bonds sold will be subject to the volume cap proposed by the Tax Reform Act of 1986 shall receive an allocation under this section subject to the same terms and limitations as imposed under Executive Order 1986-3.

   The provisions of this §  7.323 amended by Executive Order 1986-5, dated October 17, 1986, effective October 18, 1986, 16 Pa.B. 3920. Immediately preceding text appears at serial page (109821).

 An amount equal to $50 million shall be allocated to the Pennsylvania Higher Education Assistance Agency for qualified student loan bonds provided by section 144(b) of the Internal Revenue Code (26 U.S.C.A. §  144(b)) to be amended by the Tax Reform Act of 1986.

   The provisions of this §  7.323a adopted by Executive Order 1986-5, dated October 17, 1986, effective October 18, 1986, 16 Pa.B. 3920.

 An amount equal to $444,487,500 shall be allocated for qualified small issue bonds under section 144(a) of the Internal Revenue Code (26 U.S.C.A. §  144(a)) to be amended by the Tax Reform Act of 1986. This amount shall be allocated among counties by the Secretary of Commerce. A county shall receive a minimum allocation equal to the greater amount of either preliminary allocation requests issued under Executive Order 1986-3 and for which bonds sold will be subject to the volume cap proposed by the Tax Reform Act of 1986 or 25% of allocations provided under section 5(a) of the Tax-Exempt Bond Allocation Act (73 P. S. § §  397.1—397.8). A specific qualified small issue project or use granted a standby allocation under Executive Order 1986-3 (16 Pa.B. 2277) and subject to the volume cap proposed by the Tax Reform Act of 1986 shall receive an allocation under this section subject to the same terms and conditions imposed under Executive Order 1986-3. Amounts not distributed by these minimum allocations shall be allocated among counties proportionally based upon their total issuance of qualified small issue tax exempt bonds during 1985. Requests to apply this allocation to specific projects or uses will be reviewed and may be approved or disapproved by the Secretary of Commerce. Applications for allocations shall be made to the Bureau of Economic Assistance in the Department of Commerce. The Secretary will provide standby allocations for qualified small issue bonds utilizing the same procedures and subject to the same requirements imposed upon qualified small issue tax exempt bond authority allocated under the Tax-Exempt Bond Allocation Act.

   The provisions of this §  7.323b adopted by Executive Order 1986-5, dated October 17, 1986, effective October 18, 1986, 16 Pa.B. 3920.

 An amount equal to $244,487,500 shall be allocated to other qualified private activity bonds subject to the volume cap provided by the Tax Reform Act of 1986 and for individual qualified small issue projects and uses which require a greater allocation than is available to a particular county under §  7.323a (relating to qualified student loan bonds). Requests to apply this allocation to specific projects or uses will be reviewed and may be approved or disapproved by the Secretary of Commerce. Applications for allocations shall be made to the Bureau of Economic Assistance in the Department of Commerce. The Secretary will provide standby allocations under this section utilizing the same procedures and subject to the same requirements imposed upon allocations made under the Tax-Exempt Bond Allocation Act (73 P. S. § §  397.1—397.8). A specific project or use granted a standby allocation under section 4 of Executive Order 1986-3 (16 Pa.B. 2277) for ‘‘other private activity bonds,’’ and subject to the volume cap proposed by the Tax Reform Act of 1986, exclusive of qualified small issue bonds, shall receive an allocation under this section subject to the same terms and conditions imposed under Executive Order 1986-3.

   The provisions of this §  7.323c adopted by Executive Order 1986-5, dated October 17, 1986, effective October 18, 1986, 16 Pa.B. 3920.

 An unused portion of the allocation provided under § §  7.323—7.323c (relating to housing related bonds; qualified student loan bonds; qualified small issue bonds; and other qualified private activity bonds) may be reallocated by the Secretary of Commerce in cooperation with the Acting Director of the Housing Finance Agency in the manner provided by section 5(c) of the Tax-Exempt Bond Allocation Act (73 P. S. §  397.5(c)). Reallocations may be made to an eligible project or use provided by § §  7.323—7.323c.

 The Secretary of Commerce, and the Acting Executive Director of the Housing Finance Agency may establish additional policies, guidelines, forms and reporting requirements necessary to ensure compliance with this order. Procedures adopted for standby allocations under this order shall, to the fullest extent possible, be consistent with procedures used for the administration of allocations under the Tax-Exempt Bond Allocation Act (73 P. S. § §  397.1—397.8) and Executive Order 1986-3 (16 Pa.B. 2277).

 (a)  State agencies and other entities involved with the issuance or approval of qualified private activity bonds related to this subchapter will cooperate with the Department of Commerce and the Housing Finance Agency in implementing this standby allocation system.

 (b)  Issuers failing to comply with the requirements of this subchapter will be denied standby allocation approvals until compliance is achieved.

 (c)  If standby allocations provided under this subchapter are superseded by regulations adopted under section 6 of the Tax-Exempt Bond Allocation Act (73 P. S §  397.6) or a similar State statute, the Secretary of Commerce or other State officials responsible for the promulgation of the regulations are directed, to the fullest extent permissible or required under State and Federal statutes, to give full force and effect to standby allocations adopted under this subchapter.

 (d)  The Secretary of Commerce is authorized to incorporate by reference any of this order into regulations adopted under section 6(a) of the Tax-Exempt Bond Allocation Act (73 P. S. § §  397.1—397.8) and the Housing Finance Agency is directed under section 501 of The Administrative Code of 1929 (71 P. S. §  181) to assist the Department of Commerce in the performance of its duties as provided by the Tax-Exempt Bond Allocation Act.

 (e)  This subchapter shall take effect immediately and apply to qualified activity bonds subject to the volume cap proposed by the Tax Reform Act of 1986.

 This order repeals and supersedes Executive Order 1986-3 (16 Pa.B. 2277) (June 28, 1986). Notwithstanding the repeal of Executive Order 1986-3, standby allocations made for specific projects and uses are expressly preserved to the extent recognized by this order.

   The provisions of this §  7.329 adopted by Executive Order 1986-5, dated October 17, 1986, effective October 18, 1986, 16 Pa.B. 3920.

1987 ALLOCATIONS OF THE UNIFIED VOLUME CAP
UNDER THE TAX REFORM ACT OF 1986

§ 7.331. Allocations.

 The State ceiling for the issuance of qualified private activity bonds provided by section 146(d) of the Internal Revenue Code, as amended by section 1301(b) of the Tax Reform Act of 1986 (26 U.S.C.A. §  1301(b)), for calendar year 1987 shall be allocated utilizing the authority provided by section 146(e) of the Internal Revenue Code, as amended by section 1301(b) of the Tax Reform Act of 1986 (26 U.S.C.A. §  1301(b)), and section 6(a) of the Tax-Exempt Bond Allocation Act (73 P. S. §  397.6(a)), in the manner provided by this subchapter and by regulations adopted by the Department of Commerce at 12 Pa. Code Chapter 63 (relating to private activity bonds—allocations).

   The provisions of this §  7.331 adopted by Executive Order 1987-1, dated January 7, 1987, effective January 1, 1987, 17 Pa.B. 240; corrected February 6, 1987, 17 Pa.B. 626.

 An amount equal to $150 million shall be allocated for housing related bonds, including qualified residential rental projects and qualified mortgage bonds as defined by sections 142(d) and 143(a) of the Internal Revenue Code, as amended by section 1301(b) of the Tax Reform Act of 1986 (26 U.S.C.A. §  1301(b)). Requests to apply the housing related bond allocation to specific projects or uses, including mortgage credit certificate programs, will be reviewed and may be approved or disapproved by the Board of the Pennsylvania Housing Finance Agency. Applications for housing related bond allocations shall be made to the Executive Director of the Housing Finance Agency.

   The provisions of this §  7.332 adopted by Executive Order 1987-1, dated January 7, 1987, effective January 1, 1987, 17 Pa.B. 240; corrected February 6, 1987, 17 Pa.B. 626.

 An amount equal to $50 million shall be allocated to the Pennsylvania Higher Education Assistance Agency for qualified student loan bonds provided by section 144(b) of the Internal Revenue Code, as amended by section 1301(b) of the Tax Reform Act of 1986 (26 U.S.C.A. §  1301(b)).

   The provisions of this §  7.333 adopted by Executive Order 1987-1, dated January 7, 1987, effective January 1, 1987, 17 Pa.B. 240; corrected February 6, 1987, 17 Pa.B. 626.

 An amount equal to $345,837,500 shall be allocated for qualified small issue bonds under section 144(a) of the Internal Revenue Code, as amended by section 1301(b) of the Tax Reform Act of 1986 (26 U.S.C.A. §  1301(b)). This amount shall be allocated among counties by the Secretary of Commerce in accordance with the formula in section 5(a)(1) of the Tax-Exempt Bond Allocation Act (73 P. S. §  397.5(a)(1)). Requests to apply this allocation to specific projects or uses will be reviewed and may be approved or disapproved by the Secretary of Commerce. Applications for allocations shall be made to the Bureau of Economic Assistance in the Department of Commerce. The Secretary shall provide allocations for qualified small issue bonds utilizing the procedures and subject to the requirements imposed by 12 Pa. Code §  63.3 (relating to procedures).

   The provisions of this §  7.334 adopted by Executive Order 1987-1, dated January 7, 1987, effective January 1, 1987, 17 Pa.B. 240; corrected February 6, 1987, 17 Pa.B. 626.

 An amount equal to $345,837,500 shall be allocated to other qualified private activity bonds subject to the volume cap provided by the Tax Reform Act of 1986 (26 U.S.C.A. § §  1—7872). Requests to apply this allocation to specific projects or uses will be reviewed and may be approved or disapproved by the Secretary of Commerce. Applications for allocations shall be made to the Bureau of Economic Assistance in the Department of Commerce.

   The provisions of this §  7.335 adopted by Executive Order 1987-1, dated January 7, 1987, effective January 1, 1987, 17 Pa.B. 240; corrected February 6, 1987, 17 Pa.B. 626.

 The unused portion of an allocation provided under § §  7.332—7.335 shall be reallocated by the Secretary of Commerce in cooperation with the Executive Director of the Housing Finance Agency in the manner provided by section 5(b) and (c) of the Tax-Exempt Bond Allocation Act (73 P. S. §  397.5(b) and (c)). Reallocations under section 5(b)(1)(ii) of the Tax-Exempt Bond Allocation Act may be made to an eligible project or use provided by § §  7.332—7.335.

   The provisions of this §  7.336 adopted by Executive Order 1987-1, dated January 7, 1987, effective January 1, 1987, 17 Pa.B. 240; corrected February 6, 1987, 17 Pa.B. 626.

 The Secretary of Commerce and the Executive Director of the Housing Finance Agency may establish additional policies, guidelines, forms and reporting requirements necessary to insure compliance with this subchapter.

   The provisions of this §  7.337 adopted by Executive Order 1987-1, dated January 7, 1987, effective January 1, 1987, 17 Pa.B. 240; corrected February 6, 1987, 17 Pa.B. 626.

 (a)  State agencies and other entities involved with the issuance or approval of qualified private activity bonds related to this subchapter will cooperate with the Department of Commerce and the Housing Finance Agency in implementing this allocation system.

 (b)  Issuers failing to comply with the requirements of this subchapter will be denied allocation approvals until compliance is achieved.

 (c)  The Secretary of Commerce is authorized to incorporate by reference the provisions of this subchapter into regulations adopted under section 6(a) of the Tax-Exempt Bond Allocation Act (73 P. S. §  397.6(a)) and the Housing Finance Agency is directed under section 501 of The Administrative Code of 1929 (71 P. S. §  181) to assist the Department of Commerce in the performance of its duties as provided by the Tax-Exempt Bond Allocation Act (73 P. S. § §  397.1—397.8).

 (d)  Regulations adopted by the Secretary of Commerce under section 6(a) of the Tax-Exempt Bond Allocation Act for the purpose of the initial implementation of this subchapter, effective January 1, 1987, are declared to be emergency regulations as provided by section 6(b) of the Regulatory Review Act (71 P. S. §  745.6(b)) and shall take effect for 120 days notwithstanding an order of disapproval entered under the Regulatory Review Act. The regulations are deemed to be emergency rules because of the critical need to avoid delays in financing economic development activities early in 1987.

 (e)  Under section 149(e)(3)(F) of the Internal Revenue Code, as amended by section 1301(b) of the Tax Reform Act of 1986 (26 U.S.C.A. §  1301(b)), the Secretary of Commerce, or a deputy, is designated under the Tax-Exempt Bond Allocation Act as the State official authorized to issue certifications that private activity bonds for which allocations have been approved under this subchapter meet the requirements of section 146 of the Internal Revenue Code (26 U.S.C.A. §  146).

 (f)  This subchapter takes effect immediately and applies to qualified private activity bonds which are issued on or after January 1, 1987, subject to the volume cap provided by the Tax Reform Act of 1986 (26 U.S.C.A. § §  1—7872).

   The provisions of this §  7.338 adopted by Executive Order 1987-1, dated January 7, 1987, effective January 1, 1987, 17 Pa.B. 240; corrected February 6, 1987, 17 Pa.B. 626.

   This section cited in 12 Pa. Code §  63.2 (relating to provisions of the Tax-Exempt Bond Allocation Act suspended).